Budget 2026: Below inflation uplifts for government departments

Drive for greater efficiency continues

Government departments will receive below inflation uplifts for pay and non-pay as part of this year’s Budget.

With nearly 8,000 fulltime staff, Isle of Man Government is the Island’s biggest employer.

The approach is said to align with the drive for greater efficiency.

Treasury says it’s expected to generate savings of around £5.6 million in 2026-27, and £29 million over the medium term, if there is adherence to the financial plan.

Another £2.5 million has been allocated to the Transformation Fund which is designed to help departments implement efficiency schemes and streamline services.

Five million pounds has also been ringfenced for the Digital Projects Fund which supports digital modernisation projects, under £500,000, which improve the delivery of public services.

Treasury led scrutiny panels, introduced in 2024-25, will continue and priority-based budgeting will also be introduced.

You can find out more about Budget 2026 by clicking HERE.